The Bullish Pressure Returns Ahead of G20 Summit. Bitcoin (BTC) and Ethereum (ETH) Price Technical Analysis
The cryptocurrency market is showing green after a week rampant declines in the prices. The recovery recoil started on Sunday evening ahead of the G20 Summit in Argentina. The Financial Stability Board (FSB), the body that manages the regulations for the G20 group of countries said that it does not view cryptocurrencies as a threat to the financial stability. Therefore, it was taking a backseat from the regulations and policies that focus on the digital assets. The decision was communicated through a letter to the central banks and finance ministers of the G20 group of countries by the chair of FSB, Mark Carney.
This news was the much-needed boost in a cryptocurrency market that was drowning in selling pressure. Recovery momentum began almost immediately with some cryptocurrencies recording over 30% increase in value.
Bitcoin (BTC) Price Technical Analysis
Bitcoin (BTC) price is up by 12% in the last 24 hours after recording lows of $7,360 on Sunday evening. The price then embarked on an upward trend which saw it go back to exchanging hands above $8,000. The largest cryptocurrency by market capitalization is currently trading at $8,310. BTC/USD is trading double tops, while the general trend in the market is bullish.
Bitcoin price is trading above the 100 and the 200-simple moving averages. Both of the trend indicators are sloping upwards to show that the bullish trend is strengthening. The upside gains were capped below $8,700 with BTC/USD encountering stiff resistance at $8,660. Bitcoin price broke above the 61.8% Fib retracement level with the last high at $8,600 and a low of $7,360.
BTC/USD immediate support is at $8,140 while the next major support level is at $7,360. Bitcoin BTC price must sustain above the immediate support level to avoid further declines. If the bears gain control of the market, Bitcoin price could head towards the major support level. On the upside, the near-term resistance is at $8,700. This level is a significant hurdle in the recovery path to $9,000. Bitcoin price will have to break above this level to record more gains.
Ethereum ETH Price Technical Analysis
Ethereum (ETH) price has also recovered from the lows that were witnessed during the weekend trading. The crypto also positively reacted to the news that G20 will not be cracking down on cryptocurrencies. ETH/USD has surged by over 10% during the trading on the first day of the week.
The declines in price saw the Ethereum trade lows of $460; however, the price bounced back as the trend reversed from descending to sustained ascending. Ethereum broke above a couple of critical resistance levels at $500 and $530 respectively. There is a crucial, bullish trend that is forming around the $538level.
On the upside, the bulls are holding ground and could push the price to break above the immediate resistance level at $560. On the downside, the cryptocurrency has formed a short-support level at $530. The next major support level in the path of decent is at $520. If Ethereum price breaks below this level, the currency could trade below $500 level.
The cryptocurrency market is currently busking in the regulation news from G20. The bulls in the market have a reason to hold on to their digital assets. Bitcoin (BTC) and Ethereum (ETH) prices are doing better compared to the weekend trading. However, nothing much can be said as the week has just begun.